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Hello Barbara,
Magic Beans are an in-game currency which you can use to overcome the evil Rancid the Raccoon in the Rancid levels. In exchange for Magic Beans any collected Cropsies will get a damage bonus to help you deplete Rancid's health bar faster. Beans can also be used to buy Shovel Boosters and to activate your companion at the start of a level.
They can also be used to active the animal Companions when entering a level.
I hope this information helps.
Kind regards,
Johnny